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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10355
Experience:  30 years of corporate, litigation and international law
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California Retail Permit I am a house flipper and I sell

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California Retail Permit

I am a house flipper and I sell over 10 houses a year. My associates mentioned to me that I can get a retail permit and buy building material at wholesale price but use them on our projects. Kind of like my company selling to itself.

Is this legal? If not, what do I need to do to make it legal? What are the caveats of doing this?

bizlaw :

You would not be entitled to a resale sales tax exemption because you are considered the final purchaser of building materials that you are using in remodeling a house.

bizlaw :

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Customer:

Could you give me pointers to CA SOS website or code sections that discusses the eligibility?

Customer:

it's not only the sales tax i want to save. With I retail license, i can qualify for wholesale pricing from vendors. I don't mind paying the sales tax. I want to know the requirement and ramification of getting a retail license.

bizlaw :

Here is link to a tax board publication. Search for remodelling and you will see the discussion of buying materials to remodel an existing building. If I have answered all your questions please highly rate my answer as that is how I am compensated. Here is the link. https://docs.google.com/viewer?a=v&q=cache:_TMhOMBpOFwJ:www.boe.ca.gov/pdf/pub9.pdf+ca+sales+tax+on+building+materials+incorporated+into+a+house&hl=en&gl=us&pid=bl&a mp;srcid=ADGEESiiDytfX5mWzFkVbl_-Vn6amj4Ndndh5z7O7v2WchfJHj98yedWQxbTxgmzinUC84T3g7bEvBkwNHHbkETpu4eB7kvo2TDh8TuuHFH80UxC1Ck5IbE3bZfykF7oh4sf_Z4a7Pr4&sig=AHIEtbTQZyyqpAXSpV7KstRhOQx_SemlXw

bizlaw :

It is Publication 9 from the CA Tax Equialization Board

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